Business sentiment in Nigeria strengthened in December 2025, with firms expressing a more optimistic outlook for growth and activity next year, according to the latest Business Expectations Survey (BES) released by the Central Bank of Nigeria (CBN).

The total Confidence Index, a benchmark measure of business sentiment, reached 37.5 points in December, up from earlier readings, and is projected to climb to about 52.5 points over the next six months, signalling rising optimism among corporate players across the economy.

The survey, conducted between December 1 and 5, 2025, sampled responses from 1,900 business enterprises nationwide across the industrial, agricultural and services sectors. Despite prevailing economic headwinds, firms reported positive expectations for business activity volumes and hiring in the opening months of 2026.

The industry sector led the confidence standings with 38.7 points, closely followed by agriculture and services, as firms anticipated stronger operations and expanded output.

Many respondents also projected a possible appreciation of the naira and a decline in borrowing costs, which could support investment decisions in the coming months.

However, the report underscored that optimism exists alongside stubborn operational constraints. Businesses identified insecurity as the most significant risk to stability, followed by high and multiple taxes, insufficient power supply and elevated interest rates — factors that continue to weigh on profitability and growth prospects.

Capacity utilisation remained relatively stable at about 49.8 per cent in December, with the construction subsector recording the highest utilisation rate. Regionally, confidence varied: the North-East registered the highest sentiment index, while the South-East reported the lowest, though all zones maintained a positive outlook.